This reminds me of those chonky standalone GPS units many of us used to suction cup to our windshields. Back then, unlimited data wasn't widespread, smartphones were not mass market, and real time turn-by-turn directions were just best left to a specialized device. Put simply: phones were not the digital Swiss Army Knife they are now, because network bandwidth, service fees, and hardware costs didn't allow it for most people.
In 2022 there is no reason for something like the Car Thing to exist. It is a solution looking for a problem that was already solved years ago by a $10 car vent clip or a CarPlay enabled vehicle. This is Spotify trying to make a play for hardware because the business they're currently in makes no money. Companies like Apple can write that business off as just a cost of making the ecosystem stickier. Spotify can do no such thing without jacking up subscription fees on their users. Look for them to be doing that very thing once this device belly flops.
EDIT: Now that I think about it, if Spotify had tried something like this 5 or 6 years ago, it would have been some kind of Spotify branding deal on an exclusive Android phone with a big hardware maker. That move has been tried and failed so many times now by so many companies, it's just not something you see anymore. All Spotify could come up with was a mountable MP3 player.